Gypsum, Drywall & Interior Panel Manufacturing worked example

Cost Per Board at 58% overhead absorption rate: a worked example

Suppose overhead absorption rate falls to 58%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate cost per board by combining boards produced, variable cost per board, overhead absorption rate, and fixed overhead for the run.

The inputs for this scenario

  • Boards produced per run: 100 boards (held at the documented default)
  • Variable cost per board: 45 $ / board (held at the documented default)
  • Overhead absorption rate: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed overhead per run: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable board cost = boards produced x variable cost per board x overhead absorption rate.
  • Weighted cost works out to 2,860 $ / board at these inputs, and this is the headline figure for the scenario.
  • Per piece value works out to 28.6 $ / piece at these inputs.
  • Captured value works out to 2,610 $ at these inputs.
  • Fixed adjustment works out to 250 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where overhead absorption rate sits at 80% and the headline result is 3,850 $ / board, this scenario comes in 25.71% below the baseline at 2,860 $ / board.
  • It computes the total weighted run cost by multiplying board volume, variable cost per board and the overhead absorption rate, then adding fixed overhead per run. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Weighted cost: 2,860 $ / board (headline result)
  • Per piece value: 28.6 $ / piece
  • Captured value: 2,610 $
  • Fixed adjustment: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Cost Per Board calculator, set overhead absorption rate to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.